Vietnam - An attractive destination for German investors

Photo caption — Vietnam - An attractive destination for German investors. Illustration photo: VNA

A September 2025 report by the German Chamber of Industry and Commerce in Vietnam noted that German capital began to flow into Vietnam in the early 1990s, right after the country opened up. In 1992, Bültel - famous for its Camel Active brand - established a factory in Binh Duong , while outdoor brand Tatonka also opened a production line in Ho Chi Minh City. After Vietnam joined the World Trade Organization (WTO) in 2007 and the Enterprise Law and Investment Law were amended in 2015, investment flows from Germany accelerated strongly. To date, there have been 576 German enterprises investing in Vietnam, with a total capital of nearly 3.7 billion USD, creating at least 50,000 jobs across the country.

Although Germany is famous globally for its manufacturing industry, in Vietnam, nearly half of the projects are in the service sector such as consulting, logistics, business process outsourcing and information technology. There are currently 71 companies operating in this field, notably Digi-Texx with more than 1,500 employees in Ho Chi Minh City or Bosch with 4,000 employees in the technology and engineering sector. At the same time, German manufacturing plants in Vietnam continue to increase, with a total of 117 enterprises currently operating, spread across many fields. Bosch is operating a transmission belt factory in Dong Nai and maintains research centers in Ho Chi Minh City and Hanoi. Stada - Pymepharco has a pharmaceutical factory in Phu Yen . Messer Gases, a famous German family business, supplies industrial gases from large production facilities in Hai Phong and Quang Ngai. In the textile sector, many German suppliers and original equipment manufacturers are also present, continuing the long tradition of the industry. The chemical sector mainly serves domestic customers, while the automotive industry, although not yet well developed in Vietnam, still has notable investments from Schaeffler, Bosch or Dräxlmaier.

In terms of location, Ho Chi Minh City is the “gateway” for German businesses, accounting for 75% of sales and service activities. Dong Nai and Tay Ninh are home to many factories. The North has seen strong growth along the Hanoi - Hai Phong corridor, with the presence of B. Braun, Messer and new projects such as Harting, RRC and Certoplast. The Central region is increasingly attracting attention thanks to its advantages in cost and quality of life, with many notable projects in Da Nang, Quang Nam and Gia Lai. In general, most German factories are concentrated within a 30 - 40 km radius around Ho Chi Minh City, which has long been a center for attracting foreign investment.

One of the important driving forces for German businesses to choose Vietnam is reasonable labor costs, while the investment environment is increasingly open and most industries allow the establishment of 100% foreign-owned enterprises.

German companies often invest long-term, not only bringing capital, but also technology, management experience and dual vocational training models, contributing to improving the quality of human resources in Vietnam. They also focus on sustainable development, applying international environmental standards and strictly complying with the law. Many companies cooperate with local suppliers, facilitating the transfer of technology and management skills.

In the context of the European Union - Vietnam Free Trade Agreement (EVFTA) coming into effect, Vietnam's green growth strategy is being promoted, along with the trend of shifting global supply chains, the prospect of investment cooperation between Germany and Vietnam in the coming years is assessed as very positive. With long-term commitment and technological advantages, German enterprises promise to continue to accompany Vietnam's socio-economic development in the coming time.

Source: https://baotintuc.vn/kinh-te/viet-nam-diem-den-hap-dan-doi-voi-cac-nha-dau-tu-duc-20251005061437819.htm